Pension cash to take over six weeks to come
(CNS): Premier Alden McLaughlin has said that it will take several weeks for people to actually get their hands on the cash that they will be able to access from their pension funds when government amends the National Pensions Law on Thursday. Some pension companies have told their clients that it will take 60 days but the premier said that if they did this they will fall foul of the law. Nevertheless, the withdrawal, which is designed to help people through the current crisis, will take more than 45 days to get to the recipients.
McLaughlin said that the administrative process would take some time, given the number of people who will want money. He said time will also be required for cutting cheques, as it appears the money will not be paid out through electronic fund transfers, despite the current curfew measures, no postal service and restricted banking services.
Despite concerns that the anticipated mass raid on pension funds that the law will usher in will be a disaster for the future of retirement here, as few people will ever pay back what they take out, the move is extremely popular.
As the curfews to protect the public from the COVID-19 pandemic have closed businesses and put an unknown percentage of the population out of work, the pension funds provide a way to prevent people from becoming destitute in the immediate future.
The move is expected to inject around $500 million into the local economy over the six months window during which people can take cash from their pension fund. Anyone in the private sector with a pension account, whether they are still paying into it or not, and who is not already retired and therefore already taking money from it will be able to access a lump sum of up to $10,000, if they have that much in the fund.
Depending on how much you have in the fund, the amendment to the law will allow people to take a total of 25% of the rest of the fund after the first ten thousand dollars.
The decision to allow people to raid their private sector retirement piggy bank is designed to help the community get through the current economic shutdown caused by COVID-19. It is necessary because of government’s limited ability to directly assist the amount of people now in need on any meaningful scale. It has been described by the premier as a survival mechanism for workers and small business owners because no one knows how long Cayman’s economy will be in deep freeze.
During Tuesday’s briefing update, the premier said that people should be cautious and if they don’t need the money, they should not take it. He said it will not go away and they will be able to access money until November.
See amendment to the Pensions Law in the CNS Library
See Tuesday’s press briefing on CIGTV below, starting at the CNS question about pensions:
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Category: Economy, Local News, Politics
If value of a pension account plan drops in 6 weeks, how much a person you would receive? Pre-6 weeks (the day one requested it), or a distribution date value?
They trade monthly (rebalancing portfolio plus maintaining 20% cash) so its always a gamble if the unit price you get is higher or lower after that than when you put your request in to redeem your units.
I think civil servants should be able to access the funds if they no longer work for government
Need the full pension amount. Silver Thatch has provided subpar returns for years. ALLOW FULL PENSION WITHDRAWAL PLEASE.
Get your employer to change pension providers. If enough employees ask management for a change they should listen.
Except STP have 100% transparancy and publicly publish their accounts for every year since they started. Over that time they can show that they have the best investment performance and the lowest fees… prob not a surprise given they are a not for profit trust, managed by a local board of trustees who are unpaid, elected by the members annually and are required to have their own pension invested in the fund…. this is no miracle – its common sense applied well….
The Premier, Doctor Lee, Governor, Police Commissioner etc etc all tell us daily how we must stay at home, keep our distance etc etc, and quite rightly so. Then in the next breath on pensions…you will get a cheque via a non working postal service, possibly delivered to offices where you cannot go, in order that in the remote chance you actually receive the cheque in your hands, that you can go and stand in line with thousands of others to pay it in to your bank. Seriously? Which genius thought that up? It should be transfers to our bank accounts, unless someone specifically wants a cheque. Cut down human contact, don’t create more lines outside bank, that’s how this disease gets spread around…come on CIG, prevent more infection and insist bank transfers are made.
They’re making the process hard on purpose as a deterrent. Couple that with the fear many have of taking their pension now and not having anything in the future, they’re hoping and praying people don’t take it.
Every single Politician /Professional person making the decision to decimate the economy in Cayman is currently being paid.
Maybe if they came out in solidarity to the working man ( Non civil servant ) and decide not to get paid as well !
Their decisions to open up the island “in a sensible way” might be put in fast forward
Whats good for the goose is good for the gander
Since government policy forced everyone into poverty and caused these pension withdrawals, the gov should keep track of these transactions and impose an entrance fee that is earmarked to replenish these accounts dollar for dollar even if it takes 10-20 years.
Let’s clarify firstly the Government doesn’t run our pension plans, big businesses does (banks and investment organisations) and make alot of money from our funds.
You will find when people go to get their pensions (they believe they have been paying) no funds will be there, I personally know several business owners who don’t contribute at all.
Currently the market is way down, oyur pension isn’t as much as you think. From my understanding of the pension law is that 5% is paid for by the employer and 5% by employee, we’ll the 5% of the contributions by the employer are the only funds this pension companies have to guarantee not to loose, the employees 5% they gamble with on the markets (layman’s terms)
Looking forward, just an idea for government, not that they will listen.
1)All persons on a permit less than 9 years and not applied for PR, the employer and employee should not have to contribute to any pension.
2)Pension companies should have to guarantee that they can’t loose more than 2% of your total contributions
3) Cayman has a surplus of 100 million, they spent 9 million on the port advising and we haven’t seen the court fees yet.
Our voting population is approx 21,000.
Government has not given any form of real grants to anyone ok 600 here and 500 there, one time payment.
What government could do for the next 2 months is give every Caymanian household (not individual)
$2,000 pm, I’m not sure how many Caymanians votes homes there are but let’s say approximately 8,000, which equates to $32 million, which we have in surplus.
Alden needs to get this building a Port out of his head, tourism isnt going to be the same, especially the cruise industry. We don’t need that expense right now or in fact ever.
Effective immediately all MLAs who double dip, pension and salary not longer get their pension until they don’t get elected or resign (I’ve never understood this).
Caan MLAs are some of the highest paid members of government in the world.
(Figures a little of but you get my point)
Speaker $175,000 pa plus expense
Premier $170,000 pa plus expenses
Cabinet ministers $140,000
MLAs starting at 120,000
DON’T FORGET ALDEN GAVE ALL THESE RAISES SONE 12+ YEARS AGO!
Let’s be honest, our MLAs are really part time jobs, most of them have other personal family businesses, there are only a couple who don’t have other interests (and those, this is the most they’ve ever made)
Effective immediately, all MLAs take a 25% salary cut for the next 6 months.
I have a few more ideas but I’m sure your sick or Reading my garbage suggestions.
Be safe and one love, we will ge through this.
The Cayman island government need to give people total access to their funds..
Exactly. Where can I borrow for free?!
Cayman Pension plan. The biggest legit scam of them all. Outrageous. What an oxymoron.
This is exactly what happens when your Government plays your pension on the Stock Market. Gambling game and we tend to lose. Outrageous.
Government does not invest it. The pension providers invest in the stock markets. The same happens world wide.
Pension funds are nothing more than legalized ponzi schemes. Will be very surprised if “everyone” gets all the money promised to them, but take it while you can, good chance it won’t be there by the time you retire anyhow.
Precisely, and you have light bulbs in this goverment proposing we run all of healthcare that way.
Can the Govt please fix these pensions and consolidate them into one large private sector fund and put it out to a real investment management company on a fixed fee of like. 75 percent to manage and. 50 to administer… For God sakes Silver Thatch has sub contracted with a large law firms CSP to provide services that they claim. To be doing wtf… Claw backs?
Just demonstrates how little CIG knows about the “small” man in Cayman
Can anyone tell me if this new withdrawal will require to be repaid through paying an additional 1%?
I’ve looked through the amendment but its not clear if the section requiring the 1% repayment applies to the new section allowing pensioners to withdraw the emergency lump sum
I’d like to know what’ll happen to ppl that withdraw now but still have more than $35k left in pension to further withdraw that $35k for future home purchase. They are allowing those who already took $35k to dip again so I would hope this applies both ways. Does anyone know?
I am almost certain that there is a stipulation in this new plan for those who have previously made withdrawals from pension. My understanding is that they will NOT be allowed to “dip again”. I stand to be corrected.
Nothing to that effect in the law. All residents and recent departees except current pensioners and civil servants.
Pensioners can’t withdraw the lump sum unfortunately.
So if I moved off island in January, this money is off limits to me? I don’t see anywhere where it’s restricted to on island people?
legally you can’t pick up residency in your new country for 6 months, so you are still resident here. But CIG don’t use the law, id and papers please, just like ww2.
feb 20th but you can’t normally be resident for 6 months in your new country so technically you are resident here
If you look at the amendment bill, it states that you either have to be on island or have departed the jurisdiction between 1 February to the expiry of section 5 of the amendment bill, which deals with the withdrawal of emergency pension funds.
I feel sorry for the expats who are in their countries without work and starving and can not get a dollar, that’s very unkind.
We Caymanians feel sorry for our fellow Caymanians and also for the expats, but the blame is on their own Country who wont accept them. What a shame. Our Premier can only do so much and charity really begins at home. But what I am made to understand is that NAU is helping everyone. For example the Jamaica Prime Minister seems to not want to help them. The excuse is not being able to Quarantine them. I applaud The Premier for offering and endangering the Cayman Airways staff to fly them home. I am certain that they collect revenue the same as Cayman Islands. That’s a poor excuse. If the poor Jamaicans can get home they will be with their families and as the saying eat from one pot. After all they grow enough food there and even sells stuff to Cayman. The Jamaicans need to get down on the Government to let them back to their Country. What if we have another Ivan? Not only Jamaica but Honduras and Nicaragua who seems to like to see their people punish. I say shame on them.
I can see the first nationality to be picked on. May God help us all praying for all you haters.
Per usual. Smdh
Yes perhaps the mutual contempt speaks for itself. Never seen people come from a worse place have so much negative to say about their source of bread and butter.
Yes it’s not fair, I’m an expats and left last year for rollover, we are also a pension holder we deserved our money, we are all in the same situation. We are also crying for help. Even we are back from our hometown, we didn’t get a help from our government. This is supposed to be our chance so we can provide food to eat and to live in this situation. This is not fair!
You can take it too…
They said if you left the island before february 2020 you are not entitled to process.
nope feb 20th you had to be here but who knows as every 2 seconds in the press conference he said a diffrent thing
What about Caymanians who have been off island a few months and unemployed? Can they still access their pension???
Not if they are not resident in Cayman.
Ridiculous!
Government doesn’t give a shit about Caymanians living abroad. They want to keep all that withdrawn pension money on island to boost the economy, see article by CNS. I’m sure there are quite a few now unemployed Caymanians abroad who really need their pension money, me included. What the hell are we supposed to do??? And please no comments about getting help from the country we are living in, unless you know the country, rules and circumstances keep bloody quiet.
What’s wrong with keeping the money here? Whether you want to hear it or not, If you chose to live in another country, let them take care of you just like we are taking care of people from other countries who are stuck here with us..
the grass is always greener on the other side..maybe?
@3:34 pm Why keep the money that was taken from YOUR salary in a country you no longer live in!???
I’m sure if you were abroad and unemployed, you’d expect your funds..
I contributed in another country before I came here & I can’t touch it. It’s not a savings account but a pension fund.
Fantastic, just in time for retirement age! Yippee!
Why haven’t Moneygram or Western Union opened a functional branch in the old Scotiabank location at the Strand? It would be tricked out for that kind of business…might even have the computer room and vault still. Going to be waiting a long time for people to figure this stuff out.
I have always said that the best businesses that comes to Cayman is anything with the name Dart. Yet he is given such a hard time. Some people is only in the business to line their pockets.On the other hand people are complaining that they don’t have money so how can they send home money?
You know all these people with no money or are you generalizing? The people with no money right now are lower-tier Caymanians and they won’t be sending money off island.
maybe government do not want people to send money abroad, if they make people keep it here they can still pay landlords bills and medical. No way will government risk helping unless they are really forced.
This is the second disappearance of the pension money since 2008.
The real question is how can there be a mandated yet uninsured savings plan?? Gambling is illegal and yet we are forced by law to allow someone who profits greatly from this plan to gamble and loose our money.
Any mandated investment should be guaranteed or not exist.
hahaha… yeah right.
One year if you’re lucky. Speaking from experience.
The pension fund is one of the greatest scams ever. Most people do not realize that when a parent dies the pension goes to the children or a beneficiary and they are only able to access it when they are eligible to receive pensions themselves. It is a disgrace.
Really.. Wow! That’s aweful… I’ve been looking at my fund… Keen eyes out for trustees in breach of fiduciary duty. Its wasn’t hard to find going to sue and get my returns bumped up.
Fun to watch they greedy asses self deal.
It first goes to the spouse even if she doesn’t show up to the funeral. If children is the beneficiary and spouse is alive nothing goes to the children ONLY to the spouse.
Exactly. You can write what ever beneficiary you like on the form, but by law it goes to your spouse – even if you no longer live together. If you don’t want this to happen then file for divorce!!
Cash till pension come businesses will soon spring up.
I will also be taking all I can get. With the promise of only 12k a year from a $0.5m fund it makes no sense to leave it there.
So Pensioners get shafted again yet they’re the ones that built this country. Not the Johnny-come-latelys who got rich by emigrating here. Why should we make do with 1,000.00 per month when others can withdraw 25%. I’ll be in my one-door Condo at Prospect before any recovery of my Pension which I’ve contributed to for 38 years even before 1998 law came into effect. I need my 25% too to invest.
I think they just may be looking at it from the standpoint that you could’ve been retired for five years already and received $60k thus far.
Govt could have put a clause if you were retired 5 years or more then u couldn’t get 25%. As for me I retired last year got 12,000 and now won’t get even that next year. I had 500,000.00 before 2008 because I contributed long before 1998. Lost 150.000.00 after 2008 crash then recouped some value until 2019. Now left with zilch it seems.
You voted for them, as an expat I have no vote.
oh well Cayman islands government – best government money can buy!
So many people are going to do this especially expats if needed or not. As they cannot get the pension otherwise until they retire and who nows if Cayman will even be able to pay it 20 years.
Also with the recent tank in the markets, the pension funds are going to take a massive hit in value trying to liquidate their holdings into cash.
The end effect is the devaluation of peoples pensions will be far greater than 25%.
But what can you do, many people need to the money to survive.
Yes, I’ll take the maximum amount out because I am better at managing my capital then the pension provider. Have you seen the returns they give? Minus all the administrative fees.
Correct.
Totally agree. Longest bull market in yonks and they still consistently miss targets. I’ll have it and lose it myself thanks!
las vegas baby
Yeah and I would advise everybody to take it out and manage it well because when returement comes around you wouldn’t get anything anyways besides lip service explanation of what your funds was invested for and pure losses. At th end of th day its your money
Blame government. The investment regulations prevent the plans from earning what they could be earning. The regulations were supposed to be changed in 2016 but of course, they still haven’t been. The current regulations date to 1999.
Pension funds generally invest about 20% in cash anyway. They don’t need to sell their equities in a distressed market
No, not these CI ones… LP interest more like it in a friendly or unknowed hedge fund manager… Nobody loses like they lose boy…
You are talking Rubbish. Check the investments they have – you can get a list from the pension provider. They are limited in what they can invest in, by law. Your government (that you elected) enacted law.
Where is the finance minister in all of this? Doesn’t he know you can borrow money for free? Far better than raiding underperforming pensions, and just hand it out…use whatever caveats etc, but money is free right now…the pensions are collapsong on the stock markets
This is crazy
The finance minister is busy staying home so not to catch the virus. Besides you really think they give a hoot about anyone’s pension nor have any idea of what to do? Look at the health & education ministers’ contributions to the discussions so far. Give me a break.
Trying to understand your point, Elaborate please on borrowing money for free ??
I’ll be withdraw to the allowed limit and immediately invest the funds elsewhere. The local pension funds perform so poorly that it is equivalent to a savings account with 1% interest p/a.
Where would you invest the funds at the present time?
Cayman Islands Real Estate. The only country on earth the WHO may be declaring virus free within a month or two.
Which you wont be bale to visit until the rest of the world is free of the virus too.
You are right about that.
Wow, don’t count your Covids till the eggs have hatched will you.
Typical realtor response… Best time to buy… SMH
Anywhere else.
Where can you get 1% on a savings account?
I’ll get more at the Credit Union
Do you are a government employee? You can’t access your pension, can you?
Used to be a Government employee, transferred my funds from the Government scam scheme, can access them and still have Credit Union accounts. Life is great.
Getting that on my term deposits. Up to 2% in CAD.
but what’s the CAD worth now fallen more than 2% in last few years
Did the local pension funds perform poorly last year? Not really it For one of Pension providers the 2050 Fund was up 25.58% and the 2060 Fund 23.62% annualized.
Those gain were all wipe out recently. The pension administrators need to provide hedging products, gold, silver, etc.
The CI government need to make the pension administrators and the Insurance companies that own them come to the table and make this happen.
How about some effective enforcement against those employers who have not put funds in their employees accounts! They are the same ones that are not paying redundancy packages to their employees they are laying off, and are withholding other entitlements such as notice pay and accrued vacation pay?
Why should the people of the Cayman Islands be left to pick up the pieces where much of the economic and humanitarian disaster only now starting to reveal itself is a result of unscrupulous employers being permitted to operate outside the law?
So what, the goverment allows these companies to prosper all along while they just keep breaking laws. You can trace it right back to the mass granting of status during one administration, all the sub contracting/labor broker practices and wholesale granting of work permits. It will never change.
I hope WORC is hard at work sifting through every work permit and investigating the rogue employers. There are many recipients if the Status giveaway who take out T& B licenses just to get permits for their people & have no work for them. This is our golden opportunity to clean up Cayman.
Any status recipient who commits a crime made possible of facilitated by the grant can have it revoked. Let’s see if anyone has the testicular or ovarian fortitude to actually enforce some laws around here.
That will never ever happen as the Premier wants to keep business as usual! Keep dreaming.
What a embarrisment to one of the richest island in the carribbean.
Rich in money but severely lacking in wisdom
If that is so about the cayman islands, name any place in the caribbean or latin america that is a shining example to follow.
There are rich people. The government is not rich. Big difference.
The government gets $500,000,000 to play with every year (maybe not this year)
Your spelling is an embarrassment
So what’s the alternative donkey? Give every non working expat and Caymanian a $1200 donald trump cheque? Plus keep all the services running, plus buy up all the equipment needed to fight coronvarius, plus run charter flights, plus don’t get in any revenue?
Ok so now to turn attention to government economic stimulis package…Alden where’s all that “work permit for everyone” money? You sold our jobs…we want the cash.
We will have buried 4000 by then
Don’t be so miserable.
Who is the name of all that is good came up with this humdinger of a plan?
“He said time will also be required for cutting cheques, as it appears the money will not be paid out through electronic fund transfers, despite the current curfew measures, no postal service and restricted banking services.”
Cheques? Really?
It’s a way to stall. It’s very stupid.
Don’t blame CIG. This is all on the private sector’s inability to process the (unexpected) payments expeditiously.
Would prefer your cash wrapped in sea grape leaves?
as an expat(now caymanian) who has had their pension fund effectively stolen from them…i will be withdrawing every cent possible.
As a caymanian, period….I will be withdrawing also. It won’t be there in the future.
You better I’m a Caymanian born and bred not a paper one and whatever I can maximize from mine I’m gonna do the same
terrible plan that proves the the total incompetence of the the ppm.
as the economy is wiped out… the ppm have no proper stimulus or recovery plan.
their idea of raiding pension funds so you can feed yourself and keep the lights on in the short term is pure lunacy.
So says somebody who hasn’t lost his job or with enough money in the bank to pay mortgages and support a family without a job. Right now, it’s about survival and worry about the future later. Sorry that not everyone is in your enviable position.
right
Wrong – they have a plan; pay themselves and all the civil servants until everything is gone and then get a loan.
Am I reading this correctly. If I’m retired and getting 1,000.00 per month which I can’t live on I will not be able to access the 10,000.00 or the 25%? If Govt wants to qualify my 12 000.00 the same as the first 10,000.00 that’s fine but I want my 25% in order to get Dividends at CICSA Cr Union. Lord knows I’ll be in my one-door Condo at Prospect Cemetary by the time the markets recover .
You read correctly. You are a pensioner- drawing a pension. You blow your retirement you can’t even theoretically go back to work to add back to it and you become everyone else’s burden.
At least with those still in the work force, there is a chance they can still squirrel something away.
I think this situation highlights the complete unsuitability of the private sector pension plans.
You can always go to NAU!
Yup., my government my people my money is the motto.
Not the peoples government, we the people and the peoples money.
Absolutely correct, they should borrow to the limit because the value of their dollars are being dessimated and they don’t know that.
I can bet nobody from top dogs in Govt gonna half their salary. Come I bet you that. Majority of them not doing ……….
2:20. Why are so jealous of our civil service. Who else is cutting their own salary?
Because we have no job and no pay check like you civil servants!